CHAPTER VI. METHODOLOGICAL FRAMEWORK FOR THE ESTIMATION OF PRODUCTION COSTS

III. METHODOLOGICAL FRAMEWORK FOR THE ESTIMATION OF MILLING COSTS

(introduction...)

III.1 Depreciation costs of equipment and buildings

III.2 Maintenance and repair costs of equipment

III.3 Energy costs

III.4 Rental cost of land

III.5 Labour costs

III.6 Packaging costs

III.7 Interest payments on working capital

III.8 Unit production cost of meal produced by small-scale mills

III.9 Unit production cost of meal produced by roller mills

III.2 Maintenance and repair costs of equipment

Maintenance and repair costs include the cost of labour and that
of spare parts. If maintenance is carried out by the miller and/or a skilled
mill worker, the labour costs for maintenance may be included int the overall
labour costs of the mill (see section III.5). On the other hand, if the miller
must secure regular maintenance services from local fitters, he will need to
obtain an estimate of the yearly cost of these services.

Table VI.1

Estimated on-site costs of milling
equipment

Mill type

Outputkg/hr

MotorkW

Country of origin

F.O.B.

C.I.F. andInland freight

(end 1980)

1. Stone, vert.

25

0.5

Belgium

383

420

2. Stone, vert.

35

0.7

Belgium

401

440

3. Plate

45

0.7

United Kingdom

200

220

4. Stone, vert.

50

0.7

Belgium

466

510

5. Hammer

85

4.0

United Kingdom

2,040

2,250

6. Plate

125

2.0

United Kingdom

217

240

7. Stone, horiz.

150

3.0

France

770

850

8. Plate

150

3.5

India

900

1,000

9. Hammer

160

7.5

United Kingdom

1,826

2,000

10. Plate

180

3.5

United Kingdom

207

230

11. Hammer

180

7.5

United Kingdom

3,150

3,500

13. Stone, vert.

200

2.0

Denmark

277

300

14. Stone, vert.

240

2.0

Fed. Rep. Germany

624

690

15. Stone, horiz.

250

5.0

France

1,000

1,100

16. Plate

250

5.0

India

1,000

1,100

17. Plate

270

5.0

United Kingdom

260

290

18, Hammer

300

5.5

United Kingdom

1,124

1,250

19. Plate

300

3.0

France

205

225

20. Stone, vert.

310

3.0

Fed. Rep. Germany

654

720

21. Hammer

320

15.0

United Kingdom

3,387

3,725

22. Plate

340

5.5

United Kingdom

520

570

23. Stone, vert.

350

3.0

France

470

520

24. Stone, vert.

410

5.0

Fed. Rep. Germany

970

1,100

25. Hammer

500

5.5

Brazil

430

475

26. Hammer

570

7.5

United Kingdom

1,276

1,400

27. Stone, horiz.

600

7.5

Denmark

447

490

28. Hammer

680

30.0

United Kingdom

6,400

7,000

29. Stone, horiz.

700

9.0

Denmark

603

660

30. Stone, vert.

750

5.5

France

604

660

31. Stone, vert.

950

15.0

Denmark

683

750

32. Hammer

1,000

11.0

Brazil

750

825

33. Hammer

1,260

56.0

United Kingdom

10,400

11,450

34. Roller

2,000

110.0

United Kingdom

250,000

275,000

35. Roller

5,000

300.0

United Kingdom

400,000

440,000

36. Roller

10,000

485.0

United Kingdom

700,000

770,000

Source: Machinery makers and authors'
estimates.

Table VI.2

Estimated on-site costs of maize
shellers

Output kg/hr

Drive

kW

Country of origin

f.o.b. cost

c.i.f. and inland freight cost

(mid 1981)

100

Manual

-

United Kingdom

26

30

150

Manual

-

Fed. Rep. Germany

35

40

350

Treadle

-

Japan

243

270

500

Manual

-

United Kingdom

125

140

600

Motor

1.5

Fed. Rep. Germany

906

1,000

750

Motor

0.3

United Kingdom

174

190

1,125

Motor

1.5

Japan

580

640

1,300

Pedal

-

United Kingdom

180

200

2,500

Motor

4.5

United Kingdom

453

500

3,000

Motor

7.5

United Kingdom

2,650

3,000

2,600

Motor

5.5

Brazil

1,250

1,400

4,000

Motor

7.5

United Kingdom

2,950

3,200

Source: Machinery manufacturers and authors'
estimates.

The cost of spare parts is a function of the equipment yearly
utilisation rate, the quality of the grain and the care with which the equipment
is maintained. As a general rule, the yearly cost of spare parts may be
estimated at 10 per cent of equipment
cost.